RAIN

R I L RAIN INDUSTRIES LIMITED RIL/SEs/2022 February 25, 2022 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalai Street, Fort Bandra East Mumbai-400 001 Mumbai-400 051 Dear Sir/ Madam, Sub: Earnings Presentation - Reg. Ref: Scrip Code: 500339 (BSE) & Scrip code : RAIN (NSE) With reference to the above stated subject, please find enclosed herewith Rain Industries Limited Earnings Presentation on Annual Audited Financial Results of the Company for the Financial Year ended December 31, 2021. This is for your information and records. Thanking you, Yours faithfully, for Rain Industries Limited S. Venkat Ramana Reddy Company Secretary Regd. Office: Rain Center Phone: +91 (40) 40401234 34, Srinagar Colony Fax: +91 (40) 40401214 Hyderabad 500073 Email: secretarial@rain-industries.com Telangana, India Website: www.rain-industries.com CIN: L26942TG1974PLC001693 RAIN INDUSTRIES LIMITED Earnings Presentation – Q4 CY21 RAINisaleadingverticallyintegratedglobalproducerofadiversifiedportfolioofproductsthatareessentialrawmaterialsforstaplesof everydaylife.Weoperateinthreebusinesssegments:Carbon,CementandAdvancedMaterials.OurCarbonbusinesssegmentconverts Investor Relations Contact: theby-productsofoilrefiningandsteelproductionintohigh-valuecarbon-basedproductsthatarecriticalrawmaterialsforthealuminium, graphite,carbonblack,woodpreservation,titaniumdioxide,refractoryandseveralotherglobalindustries.OurCementsegmentconsistsof India Email: investorrelations@rain-industries.com twointegratedcementplantsthatoperateintheSouthIndianmarket,producingtwoprimarygradesofcement:ordinaryportlandcement Board: +91 40 4040 1234, Direct: +91 40 4234 9870 (“OPC”) and portland pozzolana cement (“PPC”). Our Advanced Materials business segment extends the value chain of our carbon processingthroughthedownstreamrefiningofaportionofthisoutputintohigh-valuechemicalproductsthatarecriticalrawmaterialsfor the specialty chemicals, coatings, construction, petroleum and several other global industries.Wehave longstanding relationships with most of our major customers, including several of the largest companies in the global aluminium, graphite and specialty chemicals US Email: investorrelations@raincarbon.com industries,andwithmostofourmajorrawmaterialsuppliers,includingseveraloftheworld’slargestoilrefinersandsteelproducers.Our scale and process sophistication provides us the flexibilityto capitalize on market opportunities by selecting from a wide range of raw Board:+1 203 406 0535 materials, adjusting the composition of our product mix and producing products that meet exacting customer specifications, including severalspecialtyproducts.Ourproductionfacilitylocationsandintegratedgloballogisticsnetworkalsostrategicallypositionustocapitalize on market opportunities by addressing raw material supply and product demand on a global basis in both established and emerging markets. Forward-Looking Statement This presentation contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including our statements addressing our expectations for segment volumes and earnings, the factors we expect to impact earnings in each segment, demand for our products, our expected uses of cash, and our expected tax rate, are forward looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed in the forward-looking statement. Important factors that could cause our results to differ materially from those expressed in the forward-looking statements include, but are not limited to lower than expected demand for our products; the loss of one or more of our important customers; our failure to develop new products or to keep pace with technological developments; patent rights of others; the timely commercialization of products under development (which may be disrupted or delayed by technical difficulties, market acceptance, competitors' new products, as well as difficulties in moving from the experimental stage to the production stage); changes in raw material costs; demand for our customers' products; competitors' reactions to market conditions; delays in the successful integration of structural changes, including acquisitions or joint ventures; the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries where we do business; and severe weather events that cause business interruptions, including plant and power outages or disruptions in supplier or customer operations. 2 Fourth-Quarter Results Financial Highlights • Revenue from Operations was ₹ 40.26 billion and Adjusted EBITDA was ₹ 5.41 billion • Adjusted Net Profit After Tax was ₹ 0.94 billion and Adjusted Earnings Per Share was ₹ 2.81 • Capex of US$ 74 million for FY 2021, of which ~ US$ 17 million relates to expansion projects Business Highlights • Third consecutive year with a total recordable injury rate below 0.2 • Sixth consecutive quarter with increased revenue despite seasonality • Robust demand and cost discipline contributed to sustain margins on consolidated basis despite higher raw material and energy costs and supply chain disruptions • Advanced Materials segment impacted by unprecedented gas price increases, planned maintenance activities, curtailment of certain products and delay in pass through of incremental raw material costs 3 Aluminium: Production, Price and Inventory Levels LME AL Inventory (Million MT) vis-à-vis LME AL Quote (000 US$ per MT) 2.50 3.0 2.00 2.5 1.50 2.0 1.00 1.5 0.50 1.0 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 With increase in demand for primary aluminium, LME prices crossed US$ 3,000 per tonne. 4 etouQ EML Primary Aluminium Production Growth in Thousand Metric Tonnes Not to Scale LME Quote Inventory • Aluminum 3-month LME seller’s price last traded at US$ 3,366 per tonne (February 22, 2022), higher than multi-year average • Prices continue to support smelter restarts and overall production increases • High energy costs in Europe prompted several smelters to reduce their production Growing Demand, Increasing Realisations and Cost Carbon Volumes (MT 000) and Price ($/MT) Advanced Materials Volumes (MT 000) and Price ($/MT) 450 $815 $860 900 $1,548 $1,613 1,700 $1,466 400 $728 800 65 $1,308 $1,427 1,550 350 $648 55 $1,238 $1,229 1,400 700 300 $599 $579 $1,036 $1,090 1,250 $512 $522 600 45 $973 1,100 250 $451 $494 950 200 $385 $379 $423 500 35 $956 $974 $989 800 150 $305 400 25 $844 650 100 $256 300 15 $688 500 350 50 200 5 200 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 CPC MT CTP MT OCP MT CPC $/MT CTP $/MT OCP $/MT EP MT CI MT Res MT EP $/MT CI $/MT Res $/MT CPC –Calcined Petroleum Coke; CTP –Coal Tar Pitch; OCP –Other Carbon Products EP –Engineered Products CI –Chemical Intermediates; Res –Resins Key Market Quotations in Advanced Materials Business Energy Cost in European Region 123 910 984 972 1,065 679 698 74 634 634 67 65 73 74 573 448 432 433 50 371 40 41 63 32 247 367 425 440 479 468 342 320 235 256 29 196 13 16 18 9 11 5 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Fuel Oil 1% $/MT Benzene $/MT Naphtha $/MT Gas €/MWh Brent Oil $/bbl Natural gas prices increased by ~195% in Europe during the fourth quarter, leading to increased operating costs. 5 Strong Performance Despite Cost-Related Headwinds (₹ in Billions) Revenue (excluding other operating income) Adjusted EBITDA Highlights in Q4 CY21 • Carbon segment revenue significantly improved supported by strong market quotations; margins increased due to effective management of raw material costs offset by rising energy costs in Europe • Advanced Materials negatively impacted during the quarter due to planned maintenance activities, significant increase in energy costs (high gas-consuming products), incremental operating costs of HHCR plant and divestment of superplasticizers business and depreciation of EURO against INR by ~2.6% • Cement segment performance declined due to higher operating costs offset by increase in volumes and realisations Note: Charts not to scale 6 Higher Carbon Revenues Driven by Pricing (₹ in Billions) *Includes Energy Revenue Volumes (MT in thousands) Revenue (excluding other operating income) Highlights in Q4 CY21 • CPC revenue increased primarily on account of higher prices due to higher raw material prices • Pitch revenue increased due to higher prices and volumes from increased demand and raw material prices CPC –Calcined Petroleum Coke; CTP –Coal Tar Pitch; OCP –Other Carbon Products Note: Charts not to scale 7 Advanced Materials Results Impacted by Extraordinary Events (₹ in Billions) Volumes (MT in thousands) Revenue (excluding other operating income) Highlights in Q4 CY21 • Revenue increase was primarily the result of higher prices and sale of HHCR products, increased demand due to market recovery and changes in customer mix • Adjusted EBITDA decreased by ₹ 1,726 million due to incremental operating costs of the new HHCR plant and significant increase in energy costs, planned maintenance activities, delay in passing increased raw material costs to customers coupled with the divestment of the superplasticizers business and depreciation of EURO against INR EP –Engineered Products; CI –Chemical Intermediates Note: Charts not to scale 8 Higher Cement Revenues Driven by Volumes and Realisations (₹ in Billions) Volumes (MT in thousands) Revenue (excluding other operating income) Highlights in Q4 CY21 • Revenue from Cement business increased by 9.8% due to combination of higher volumes and increase in price realisation • Adjusted EBITDA decreased by ₹ 99 million due to higher operational costs OPC –Ordinary Portland Cement; PPC –Portland Pozzolana Cement 9 Note: Charts not to scale Debt Summary US$ in Millions Dec 2021 Dec 2020 Cash Inflows / Outflows during 2021 7.25% USD-denominated Senior Secured 546 550 Notes (due in April 2025) • Operating cash-flows Includes net working capital outflows of ₹ 11.01 billion (compared to inflows of ₹ Euro-denominated Senior Secured Term 3.03 billion for CY 2020), due to increase in prices 441 479 Loan (due in January 2025) * across all business units. Senior Bank Debt 28 39 • Capital expenditure of ₹ 5.50 billion (US$ 74 million) during the year 2021 includes ₹1.26 billion (US$ 17 Sales Tax Deferment 6 7 million) spent on expansion projects. Finance Lease Liability 59 72 • Net cash used in financing activities of ₹ 7.40 billion Gross Term Debt 1,080 1,147 during CY 2021 majorly includes outflow of ₹ 4.86 billion towards interest payments and dividend Add: Working Capital and other Debt 71 77 payments. Less: Deferred Finance Cost 9 12 (₹ in millions) Total Debt 1,142 1,212 Particulars CY 2021 CY 2020 Less: Cash and Cash Equivalents 228 280 Operating Activities 8,336 18,225 Net Debt 914 932 Investing Activities (5,268) (7,708) LTM Adjusted EBITDA 341 269 Financing Activities (7,401) (5,999) * Debt of €390 million converted at EURO/USD exchange rates of 1.13 and 1.23 as at Dec. 31, 2021 and Dec. 31, 2020 respectively 10 Summary of Consolidated Income Statement ₹ in Millions Particulars Q4 2021 Q4 2020 CY 2021 CY 2020 Net Revenue 39,660 26,201 143,697 103,962 Other Operating Income 601 201 1,571 685 Revenue from Operations 40,261 26,402 145,268 104,647 Reported EBITDA 5,468 7,776 25,291 21,012 Adjusted EBITDA 5,410 4,806 25,174 19,896 Adjusted EBITDA Margin 13.4% 18.2% 17.3% 19.0% Profit Before Tax 2,234 4,450 12,764 8,510 Tax Expense, net 2,958 1,229 5,829 2,627 Non-controlling Interest 246 151 1,134 301 Reported (Loss) / Profit After Tax (970) 3,070 5,801 5,582 Adjusted Profit After Tax 944 1,159 7,560 5,321 Adjusted Earnings Per Share (in ₹)* 2.81 3.44 22.48 15.82 *Quarterly Earnings Per Share is not annualized. 13 Reconciliation of EBITDA and PAT ₹ in Millions Particulars Q4 2021 CY 2021 EBITDA PAT EBITDA PAT A. Reported 5,468 (970) 25,291 5,801 B. Adjustments: • Expenses towards strategic projects and other non- 466 466 540 540 recurring items • Repair and other costs incurred on account of hurricane 74 74 513 513 • Insurance claims received during the quarter related to (337) (337) (337) (337) prior periods • Gain on disposal of assets held for sale (221) (221) (221) (221) • Reversal of reorganisation costs accruals (40) (40) (103) (103) • Income due to waiver of Payroll Protection Program Loan - - (469) (469) by federal government of United States • Gain on divestment of superplasticizer business - - (40) (40) • Impairment of pond pitch asset - 168 - 168 • Tax impact on above adjustments - (78) - (174) • Valuation of deferred taxes - 1,882 - 1,882 C. Adjusted (A + B) 5,410 944 25,174 7,560 14 RAIN – Key Business Strengths • Three business segments (Carbon,Advanced Materials and Cement) • Global presence with 2.4 million tonnes p.a. calcination capacity, 1.0 million tonnes p.a. CPC blending capacity, 1.3 million tonnes p.a. coal tar distillation capacity, 0.6 million tonnes p.a. advanced materials capacity and 3.5 million tonnes p.a. cement capacity • Transforming by-products of oil and steel industries into high-value carbon-based materials essential to numerous manufacturing applications and end products • Long-standing relationships with raw material suppliers and end customers • Leading R&D function drives continuous innovation • Diversified geographical footprint with advantaged freight and logistics network • Facilities with overall 177 MW co-generated steam and power capacity and renewable solar power • Experienced international management team • Strategy shift from low-margin products to favourable product mix RAIN Group continues to grow on its core competencies. 15